(25 September 2005) A new report released by UNISON demonstrates Private Finance Initiative (PFI) schemes do not out-perform public sector projects. "A Policy Built on Sand" nails the claim that the extra costs of PFI are offset by increased efficiency and it knocks out another of the Government's arguments for its continued use to build hospitals, schools and other major public sector projects. Dave Prentis, General Secretary of UNISON and EPSU vice-President said:
"UNISON has always argued that PFI is a waste of taxpayers money. This report knocks out another of the Government's chief arguments for its continued use, namely that it generates value for money by improving the efficiency of construction procurement. This report shows that the evidence used to justify this claim was not only selective but fatally flawed.
"The Government has relied on this "efficiency" argument to such an extent they have forced non-PFI projects to add up to 24% extra onto their bids, to take account of notional cost and time overruns. The effect of this adjustment, intended to counter "optimism bias', is to make non-PFI schemes look even more expensive and therefore less attractive.
"This false argument has not only been used to promote PFI schemes in the UK but also to export PFI across the world.
- For the full Unison press release
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